The crypto market is in a very impressive recovery phase, especially in this final quarter of 2023.
Investors are jumping into the market, and analysts continue to publish bullish predictions.
But what if contrary to what we all believe, we aren't fully in a bull market yet? Or maybe we are.
If either of these were the case, how would we know it?
According to a recent report published by Binance, we may have a few ideas to help us determine whether or not the bull market is here.
Here are a few of them:
The crypto market cap has gone from struggling to break above $1 trillion, to Bitcoin alone, being close to $900,000.
According to this report from Binance, almost all of the cryptocurrencies on the market have increased in price to some degree.
In particular, the total crypto market cap has more than doubled since the beginning of the year and has stacked an additional $870 billion to its standing.
By the end of November, this metric sat comfortably at $1.6 trillion. Today we are witnessing a possible break above $1.65 trillion.
According to Binance, the fourth quarter of 2023 saw the most of the crypto market's growth, as $596 billion poured in, and the crypto market cap rose by 55% in Q4 alone.
Binance highlights the improvement of the stablecoin market as another indicator of improving market conditions.
According to Binance, the supply of the top five stablecoins (USDT, USDC, BUSD, DAI, and UST) has turned positive in the final quarter of 2023 after declining massively in the last three quarters.
According to the report, the stablecoin supply shows how much investors have, ready to invest in crypto. It follows that if the net stablecoin supply increases, it means that more investors are entering or re-entering the crypto market, which could be a sign of a bull market.
What about NFTs?
According to the report, the NFT market volumes have also surged recently, especially in November.
Binance notes that the market's volumes have broken an eight-month downtrend, and are now growing at a rate of almost 200% MoM.
Like many other reports, Binance's report notes that the increase in NFT trading volumes may be due to the boom in Bitcoin-based NFTs (which appear to be beating Ethereum's, by the way)
According to Binance's report, Bitcoin NFTs generated over $375 million in volume in November. This edges out Ethereum's close (but not enough) volume of $348 million.
Binance found and reported that the fees for the top 20 crypto projects increased by 84% in October. This is more than September's levels by more than 100%.
This, according to Binance, suggests that there is a higher activity on crypto networks, and competition for block space and network resources is also on the rise.
The report also mentioned that the TVL in DeFi protocols has increased in this quarter, along with the value of DeFi dominance.
In total, DeFi dominance has grown by 18% MoM in November, indicating that DeFi projects are gaining more market share and relevance in the crypto industry.
To put things simply, the answer is no. We are, however, in the transition stage towards a bull run.
Binance's report concludes that the market is merely showing signs of entering a bull market, considering how well it has improved in Q4. In essence, investors are becoming more optimistic about crypto, and the general market sentiment is improving.
However, investors are also advised in the report, to avoid FOMO trades.
The crypto market, despite its bullishness, is still a very volatile one, and investors are advised to do their own research and exercise caution before making any investment decisions.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.